Question

Calculating the Total Overhead Variance Standish Company manufactures consumer products and provided the following information for the month of February:
Units produced.....................131,000
Standard direct labor hours per unit...............0.20
Standard variable overhead rate (per direct labor hour)......$3.40
Actual variable overhead costs.................$88,670
Actual hours worked....................26,350
Required:
1. Calculate the total variable overhead variance.
2. What if actual production had been 129,600 units? How would that affect the total variable overhead variance?


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  • CreatedSeptember 01, 2015
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